We’re the clear market leader in bringing MDI into the market and we’re still taking share out of the installed base of tubed pumps. And so we don’t really see anything in the data. And out in the market we see a lot of promotional activity. But we haven’t — our field is not really reporting any move that’s making it harder for us in any way to convert people off of their tubed pump experience because Omnipod 5 and for that matter Omnipod DASH are so compelling. So that’s maybe a long more in-the-weeds answer than you’re looking for but that’s how we see it. On the European side of the question, it’s — I think we’re going to see that different market by market. And in fact in the UK what we see is different hospital by hospital. So in some instances, the NHS trust hospitals are tilting more towards new customer starts with Omnipod 5.
And in some cases, they’re tilting more towards upgrading from Omnipod DASH as a mix on balance more conversion than new customers start. A little bit of that is driven by physician preference and a little bit of that is driven by the hospital budget for the year. And so I think we’ll see — and I think it will look a little different in Germany and I think they’ll look a little different as we get into other countries. As a reminder, the contracting in Europe locks everybody into a contract. So in the US we’re in the pharmacy channel. It’s easy to convert from a tubed pump on to Omnipod 5. In most of the European markets whether you’re on an Omnipod DASH or you’re on a tubed pump, you’re locked into a contract for a period of time. And so for example in the UK it’s at the discretion of the hospital to upgrade somebody to an Omnipod 5.
And so that market behavior will look a little bit different market by market. What we do know is that Omnipod 5 is just — the pent-up demand for Omnipod 5 in our European markets is really strong and you can see the results already in the UK.
Operator: Our next question comes from Margaret Kaczor from William Blair. Please go ahead. Your line is open.
Margaret Kaczor: Hey, good afternoon. Thanks for taking the question. I wanted to talk a little bit about Omnipod GO. I think you had mentioned that you’re maybe seeing some pull-through in sales for the whole Omnipod family even early on. So is there any more detail around what you’re seeing and how that relates maybe to the long-term commercial opportunity of a patient per account basis or however you look at it? And then as a follow-up, which I’ll sneak through as you think about 2024 guidance, are you assuming any of that benefit from that pull-through direct sales from Omnipod 5? Thanks.
Jim Hollingshead: Thanks Margaret. I’ll do them in reverse order. We haven’t put anything formally into the guide out of the Omnipod GO pilot and we’re still planning — so this is not even yet a limited market release. It’s a commercial pilot. And so we haven’t tried to quantify that or include any of it into the color that Lauren provided or the guide. The pilot the — I’m really pleased that we’re piloting it in the way we are because we are doing exactly what we wanted, which is we’re learning a lot. And it’s I would say a pleasant surprise as we get into these PCP practices and talk to them about the offering that not only do they recognize the target patient profile for Omnipod GO as we characterize it. But as we explain Omnipod GO and they see the ease of use of Omnipod GO they ask us about the broader product portfolio.
And I don’t think we anticipated that that would be happening. And so it’s — and what it tells us is that Omnipod therapy genuinely is so simple to use that it should open up the conversation in primary care. What we’re using the pilot for is to figure out what are the mechanics of that. So what does it look like? How many reps? What’s the call pattern? What’s in the bag? And we’re testing things like the target patient profiles and things like that. And so I continue to think of it as early days but the learnings from the pilot have been really, really productive for us as we think about how to approach type 2 patients in the primary channel.
Operator: Our next question comes from Joanne Wuensch from Citigroup. Please go ahead. Your line is open.
Unidentified Analyst: Good afternoon. This is actually Anthony [ph] on for Joanne. Thanks for taking our question. Just a quick easy one here. I just want to confirm the $10 million this quarter that was associated with the Omnipod 5 ramp dynamics. I just want to confirm that was the tailwind. And then are you providing any guidance on what this number could be next year whether it’s a tailwind or a headwind? Thank you.
Lauren Budden: Yes. So the $10 million is the double script phenomenon. And what’s different now is that conversions is really a small component of that. So it’s really immaterial. So going forward we expect the double script phenomenon to continue, but it’s really just part of our normal growth rate going forward on new customer starts.
Operator: Our next question comes from William Plovanic from Canaccord Genuity. Please go ahead. Your line is open.
Caitlin Cronin: Hi. This is Caitlin Cronin on for Bill and congrats on a great quarter. Just to dig into US competition a little bit more it seems like there’s been a few new entrants into the market this year and updates and potentially some early next year. How are you thinking about kind of the competitive landscape for tubed pumps and then also kind of for patch pumps in development going forward? Thank you.
Jim Hollingshead: Hi, Caitlin. We’re very confident in our competitive position. Omnipod 5 with G6 sensor is the best AID offering on the market. And what we see coming in competitor pipelines — we think nothing in competitive pipeline is as good as Omnipod 5 with G6. And so — and it doesn’t mean that there won’t be competition. As I said earlier, we see our competitors out there’s a lot of promotional activity around from some of our competitors. So we see that out in the world. We haven’t really seen it impact our results at this point. Now competition always — I think — first of all, I think, competition is great for business. It helps everybody learn and develop better products and it helps customers have better experience, which is what we’re all trying to do.
